Oman - The economy

DOCUMENT OF INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION Not For Public Use Report No. EMA-55a OF OMAN September 12, 1972 Europe, Middle East and North Africa Department IThis report was prepared for official use only by the Bank Group. It may not be published, quoted | or cited without Bank Group authorization. The Bank Group does not accept responsibility for the accuracy or completeness of the report.  CURRENCY UNIT: Rial Saidi (RS) (1000 baiza = 1 RS) Before August 15, 1971 RS 1 = US $2.40 US $1 = RS o.417 Currently RS 1 = US $2.60 US 4 = RS 0.385  This report is based on the findings of an economic mission which visited Oman during March and April 1972. The mission consisted of the fol- lowing: Harold Larsen Chief Joseph Korosec General Economist Constantine Giatrakos National Accounts Andreas Papasolomontos (FAO) Agriculture Clifford Hardy Transport Tillman Neuner Transport Burton Newbry Education Sheikh Noor Education Trevor DaCosta Project Officer The report also drew upon the findings of Mr. Gavin E. Wyatt (Electric Power), who visited Oman in December 1971.   TABLE OF CONTENTS Page No. BASIC DATA MAP SUMMARY AND CONCLUSIONS .......... .................... i - xi I. TIIE SETTING ......................................... 1 Natural Resources . ................................. 1 Population ........................ .. .......... 2 Political Background . ................................ 3 II. RECENT ECONOMIC PERFORMANCE .......................... 5 Growth of Output ..................... 5 Use of Resources ....................... 6 Internal Finance ..................... 7 External Sector ...................................... 10 Government Administration ............. ............... 13 III. PRINCIPAL ECONOMIC SECTORS ....... .................... 14 Oil ............................................ 14 Agriculture .......................................... 17 Transport ............................................ 24 Power ............................................ 31 Education ............................................ 33 Health .................. ...... 36 Domestic Water Supply ................................. 36 IV. DEVELOPMENT STRATEGY AND PROSPECTS ..... .............. 38 ANNEX - NATIONAL ACCOUNTS .......................... 1 - 9 STATISTICAL APPENDIX   Page 1 of 2 pages COUNTRY DATA - OMAN AREA POPULATION DENSITY 260,OO0 km2 0.6 million (mid-1971) 2 per km' 2 Rate of Growth: 3% (from 1966 to 1971) ibid: 600 per km of arable land POPULATION CHARACTERISTICS HEALTH 1971 Crude Birth Rate (per I.0 0* Poplnulatin nor n _hv_i_i_n 14,600 Crude Death Rate (per 1,000) Population per hospital bed 1,800 Infant Mortality (per 1,000 live births) INCOME DISTRIBUTION DISTRIBUTION OF LAIND OWNERSHIP 1971 s of national income, lowest quintile % owned by top 10Q of owners highest quinti'll .. % owned by smallest iO% of owrf rners .CCESS TO PIPED WATER ACCESS TO ELECTRICITY 1971 7 of population - urban .. % of population - urban 60(Q - rural .. - rural 10% NUiTRITION EDUCATION 1972 Cslorie intake as % of requirements .. Adult literacy rate % Per capita protein intake Primary school enrollment % 15Z ONP PER C-APITA IN 1071: TTU $444/ rCOSS NATIONAL P.'-lOD'CT IN 1071 ANEINJAL RATE OF GRuwTH (%, cons-- US $ Mln.!/ % 1960-65 1965-70 1971 GNP at Market Prices 266 100.0 Gross Domestic Investment 92 34.6 Gross National Saving 1i45 54.5 Current Account Balance 35 13.2 Exports of Goods, NFS 239 89.8 Imports of Goods, NFS 106 39.8 OUTPUT, LABOR FORCE AND PRODUCTIVITY IN 1971 Value Addedi/ Labor Force?! V. A. Per Worker US $ Mln. % Mln. % US $ % Agriculture -Fisheries 40 12 124 83 32' 14 Oil 225 65 3 2 75,000 3,275 Services 2 1 5 3 Unallocated 77 22 18 12 ) 3,434 150 Total/Average 3W 100 150 100 2,90 100 GOVERNMENT FINANCE General Governrment_/ Central Governmentl/3/ US S Mln. % of caP US MI"n. of GDP 1971 1971 1969-71 1971 1971 1969-71 Current Receint. . . . 120 35 '1 Current Expenditure . . . 63 18 21 Current Surplus . . . 57 17 19 Capital Expenditures . . .49 14 17 External Assistance (net) . . . 2 1 1 not available not applicable  Page 2 of 2 pages COUNTRY DATA - OMAN MONEY, CREDIT AND PRICES 1965 1969 1970 1971 (million RS outstanding end periodj Money and Quasi Money .. 29 35 46 Bank Credit to Public Sector 0 0 0 Dank Credit to Private Sector ,= 2.3 3.7 4.3 (Percentages or Index Numbers)&/ Monev and Quasi Money as % of GDP .. 31 31 32 General Price Index (1963 = 100) .. Annual percentage changes in: .. General Price Index BRank credit to Public Sector :Bank credit to Private Sector .. 100 150 167 bWLANCE OF PAYMENTS MERCHANDISE EXPORTS (AVEHAGE 1969-71) 1969 1970 1971 US $ Mln % (MillTions US $ 17 :.:;o-ts of Goods, NFS, net 103 119 132 oil, net 116 99 Tmports of Goods, NFS 21 37 83 All other commodities 1 1 .,source Gap (deficit = -) - 7 Total 117 10 Tr.r,erest Payments (net) - - - iorkers' Remittances 1 1 1 Other !`actor Payments (net)- - - 15 EXTERIAL DEBT, DEC-M'BER 31, 1971 Net Transfers - - - Balance on Curent Account 80 79 US $ MIn Direct Foreign Investment - - - Public Debt, incl. guaranteed 2 Net MILT Borrowine - - 2 Non-Guaranteed Private Debt Dishursements ( - ) ( - ) ( 2 ) Total outstanding & Disbursed 2 Amortization ( -) ( -) ( - Subtotal CaGital Grants - - - DEBT SERVICTE !ATIO FOR 1971 Other Capital (net) - - - ,therie n.e.i - - - Lncrease in Reserves (i) fi 79 32 Public Debt, incl. guaranteed 0 Gross Reserves (end year) 120 198 234 NonG-uaranteed Private Debt Net Reserves (end year) 118 196 228 Total outstanding & Disbursed 0 PATE OF EXCGIPAGE